BEER AND WINE FROM A GROCER

A major nonpartisan battle in this year's Colorado legislative session will determine whether consumers have the option of buying full-strength beer and wine in grocery and convenience stores. Today, the law allows sales of beer, wine and liquor only in independent liquor stores that may sell virtually nothing else.
Last year the Legislature did the right thing, finally ending the state's longstanding law that required liquor stores to close on Sundays. This year, legislators should continue the deregulation of liquor sales by allowing at least the sale of beer and wine in grocery and convenience stores.
Colorado's bizarre collection of liquor laws isn't in place to benefit consumers. The regulations aren't there to enhance safety, or to appease prohibitionist and religious organizations. They exist as political favors that benefit one small segment of retailers with legal impediments to competitors.
When legislators worked last year to undo the Sunday blue law, the only serious opposition came from liquor store owners. Some wanted Sundays off, in order to spend more time with families and to attend church.
"I don't want to lose my kids seven days a week because I'm not there when they're growing," said liquor store owner Dawit Beyere, as quoted in the Rocky Mountain News.
That's a compelling argument. But why should one genre of retailer get a state-sanctioned day off with the guarantee that no competitor will work on that day? Why not a law that requires shoe stores to close on Sundays, forcing the closure of mom-and-pop shops along with shoe departments in big box retailers such as Wal-Mart?
Consumers, who far outnumber liquor store owners, obviously value Sunday liquor sales. If they didn't, the stores would do little business on Sundays and they would close voluntarily.
Likewise, consumers would probably enjoy the benefit of having the option to buy beer and wine while shopping for groceries or buying beer at a gas station. They would certainly benefit from the added competition, as grocers, gas retailers and liquor store owners would use low prices and other enticements to win consumer loyalty. For consumers, it's a no-brainer: more retailers of liquor would mean more options, more convenience, more selection and better prices.
Opposition, however, will be emotional and fierce. Last year, when grocery store sales were proposed, legislators heard from liquor store owners who had invested their entire fortunes in businesses built around the current liquor laws. Dharmesh Jivan, a Colorado Springs liquor store owner, wrote in a letter published in Tuesday's Gazette that "Almost 50 percent of my store's revenue comes from selling beer. If I lose half of that to the chain stores, my family's livelihood and my employees will be harmed."
That's genuinely sad, but it's no reason to continue limiting the options of consumers throughout Colorado. Jivan invested in retail on a hope, a prayer, or an assumption that all market conditions - including today's bizarre regulations - would stay the same forever. His risk is no reason to continue punishing thousands of consumers with limited options.
Joining liquor store owners in opposition to expanding liquor retail options will be owners of craft breweries, for which Colorado is famous. They argued last year that independent liquor stores have been willing to experiment with introductory and seasonable beers, whereas corporate buyers might not. Of course, in a free market consumers determine which products a store will sell.
Colorado's small, family-owned liquor stores are wonderful. Legislators should help them stick around by eliminating laws that restrict them to selling liquor and soft drinks only, allowing them to experiment with unlimited niche products that might help them compete.
Yes, competition from Safeway, Wal-Mart and 7-11 would threaten most Colorado liquor stores. Some would fail; others would find ways to get even better and compete. But winners and losers in the business of liquor retail should be determined by millions of independent consumer transactions, not by antiquated laws designed to aid one small special interest of independent retailers.